It is now likely that the Abbey Theatre will move to a site on George's Dock in Dublin alongside the International Financial Services Centre.
The Minister for Arts, Sport and Tourism, John O'Donoghue, told the Dáil this afternoon that the location was potentially suitable and that he hoped shortly to bring a decision to Government.
His announcement is set to end the Government's long running search for a new home for the National Theatre.
The Carlton Cinema on Dublin's O'Connell Street and Colaiste Mhuire on Parnell Square had been ruled out, as had redeveloping the existing site.
Mr O'Donoghue told Fine Gael's Jimmy Deenihan that following negotiations with the Dublin Docklands Development Authority a potentially suitable site had been found on George's Dock, a few hundred yards from the theatre's current location.
The minister said he was holding talks with the theatre to finalise its requirements and he hoped to bring the issue to Government for a decision shortly.
Earlier, Mr O'Donoghue had said he could not disagree with Labour's Brian O'Shea that it was incredible that the shortfall of nearly €1 million in The Abbey's finances could have gone unnoticed.
In the aftermath of the disclosure, he had considered changing the arrangements so that the theatre was funded directly by Government rather than through the Arts Council, but on reflection decided the current arrangement should continue.
However, he said he would be asking that an official from his department sit on the company's finance committee in future.
